Iowa § 554.9405 Modification of assigned contract

Iowa Statutes

§ 554.9405 — Modification of assigned contract

Iowa § 554.9405

Title XIIICOMMERCE

Ch. 554UNIFORM COMMERCIAL CODE

This text of Iowa § 554.9405 (Modification of assigned contract) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 554.9405 (2026).

Text

1.Effect of modification on assignee. A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a breach of contract by the assignor. This subsection is subject to subsections 2 through 4.

2.Applicability of subsection 1. Subsection 1 applies to the extent that:

a.the right to payment or a part thereof under an assigned contract has not been fully earned by performance; or

b.the right to payment or a part thereof has been fully earned by performance and the account debtor has not received notification of the assignment under section 554.9406, subsection 1.

3.Ruleforindividualu

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1. Effect of modification on assignee. A modification of or substitution for an assigned
contract is effective against an assignee if made in good faith. The assignee acquires
corresponding rights under the modified or substituted contract. The assignment may
provide that the modification or substitution is a breach of contract by the assignor. This
subsection is subject to subsections 2 through 4.
2. Applicability of subsection 1. Subsection 1 applies to the extent that:
a. the right to payment or a part thereof under an assigned contract has not been fully
earned by performance; or
b. the right to payment or a part thereof has been fully earned by performance and the
account debtor has not received notification of the assignment under section 554.9406,
subsection 1.
3. Ruleforindividualunderotherlaw. ThissectionissubjecttolawotherthanthisArticle
whichestablishesadifferentruleforanaccountdebtorwhoisanindividualandwhoincurred
the obligation primarily for personal, family, or household purposes.
4. Inapplicability to health care insurance receivable. This section does not apply to an
assignment of a health care insurance receivable.